May 22, 2024

Electronic Warfare Market is Transforming Military Capabilities Trends by Next Generation EW Systems

The electronic warfare market comprises systems and equipment such as radar warning receivers, electronic countermeasures, and directed energy weapons that are primarily used in the defense sector to protect troops and equipment from radar and missile threats. EW systems counter enemy avionics and radars, secure communications, and provide situational awareness.

The Global Electronic Warfare Market is estimated to be valued at US$ 18.45 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.

Key players operating in the electronic warfare market are BAE Systems plc, Elbit Systems Ltd., General Dynamics Corporation, Israel Aerospace Industries Ltd., L3Harris Technologies Inc., Leonardo SpA, Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, SAAB AB, Thales Group, Mistral Solutions Pvt. Ltd., Chelton Limited, Rafael Advanced Defense Systems Ltd, Rohde & Schwarz India Pvt Ltd, QUEST GLOBAL, Mercury Systems, Inc., IAI, DRDO, TEKTRONIX, INC., and Tata Advanced Systems Limited.

Countries are increasingly investing in EW capabilities to gain an asymmetric advantage over adversaries. Additionally, the development of next-generation EW suites for applications such as airborne electronic attack, electronic protection, and situational awareness is propelling market revenue.

EW equipment manufacturers are also focusing on expanding their global presence and customer base. Major players are involved in partnerships and contracts to supply technologically advanced EW systems in international markets such as the Middle East, Asia Pacific, and Europe. The growing adoption of EW across navies and new platforms is expected to continue driving the global expansion of the electronic warfare market over the forecast period.

One of the key trends in the Electronic Warfare Market Size is the development of next-generation EW capabilities using new technologies. Manufacturers are investing in electronic attack payloads using artificial intelligence, cognitive EW, networked capabilities, and miniaturization of EW systems. Such advances will help counter next-gen threats more effectively. In addition, there is a rising focus on integrating EW suites with other military communication and sensor systems to provide enhanced situational awareness on the battlefield.

Porter’s Analysis
Threat of new entrants: The electronic warfare market requires huge R&D investments and manufacturing facilities to produce state-of-the-art technologies. These high entry barriers deter new companies from easily entering this market.

Bargaining power of buyers: Individual buyers have weak bargaining power due to the highly specialized nature of electronic warfare technologies and systems. However, large government organizations and militaries have significant bargaining power as major customers.

Bargaining power of suppliers: A few large electronics component suppliers dominate this market, giving them reasonable bargaining power over OEMs in the industry. However, electronic warfare system integration requires expertise, balancing supplier power.

Threat of new substitutes: There are limited substitute technologies for electronic warfare systems currently. However, the development of new directed-energy weapons and other next-gen capabilities could pose a future threat of substitution.

Competitive rivalry: The electronic warfare industry landscape is consolidated with major global players competing intensely for contracts from armed forces and governments worldwide.

In terms of value, the electronic warfare market in North America holds the largest share primarily due to high defense spending and ongoing modernization programs by the US and Canada.

The electronic warfare market in Asia Pacificregion is poised to grow at the fastest rate during the forecast period. This is attributed to the rising defense budgets and procurement of EW systems by countries such as China, India, Japan and South Korea to boost their military capabilities.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it